Reference no: EM133124495

Question - The Walk for Kids is an annual fundraising event that raises money for research on Children's blood disorders.  WFK costs $120,000 to stage even if nobody shows up. To encourage people to participant, each walker is given a T-Shirt that costs WFK $8.00 and refreshments that cost an average of $10.00 per person.  This year, the organizers of the walk got a $20,000 grant from the City Foundation to offset part of the costs associated with staging the walk.  WFK raises money by asking each walker to solicit sponsors who agree to pay $0.75 per mile for each of the 10 miles that all the walker completes.  In the past, all the walkers completed the 10-mile course and had an average of 20 sponsors.

1. How many walkers have to participant in the walk for the event to at least break even?

2. If the cost of refreshments per walker increases from $10.00 to $11.00, the break-even number of walkers will

a. increase

b. decrease

c. stay the same